Pensioners have been given the strongest signal yet that the state pension triple lock will be watered down.
Currently state pensions are due to rise at a record rate of 8% next year.
But on Wednesday, the Work and Pensions Secretary Therese Coffey suggested the Conservatives could break a manifesto promise and water down the triple lock to avoid the rise.
Coffey told the Sun: “We'll be looking at what is happening with earnings and that'll guide us on what happens on the pensions rise given to pensioners next year.
"I know we need to be driven by the data."
Normally there is very little to discuss with state pension increases because this is worked out by a simple formula, unchanged since 2010.
Every year the state pension will go up by the highest of inflation, 2.5% or average wage growth during a set period - under an agreement called the triple lock.
But this has not been a normal year.
Wage growth was a whopping 8% in the three months to July, according to the Office for Budget Responsibility (OBR).
This record rise in wages is because average earnings were lower during lockdown, then rose again as the country began to return to work.
An 8% increase in the period means the full state pension is due to rise from the current maximum of £179.60 a week to £194 from April 2022.
The state pension increase is usually signed off in November every year.
Chancellor Rishi Sunak has also hinted he could break his manifesto pledge and water down the state pension triple lock.
If he does, women would be the worst affected as they need state retirement cash more than men.
Amanda Latham, of consultants Barnett Waddingham, said the pension system was "intrinsically biased towards men".
She added that women were "twice as likely as men to be walking into retirement with insufficient funds".
Often this is because women tend to pick up more family and caring responsibilities in their working lives, often taking hits to their career and earning ability.
Women are also more likely to have lower-skilled or zero-hours roles than men.
This means they earn less overall, so put less into private retirement pots and are more reliant on their state pensions.
What is the pensions triple lock? Tory pledge and the threat to it explained
Despite popular belief, there is no state pension retirement 'pot' that is built up as we work and pay National Insurance.
Instead, the state pension for retirees today is paid by people currently working.
Because of this, MPs also think workers will object to a big state pension rise when many have had pay and benefits slashed during the pandemic.
The state pension is usually paid every four weeks, in arrears.
It is vital for retirees, but many are underpaid without realising and not getting the payments they deserve.
If you you have shortfall in your pension, you may be able to apply for pension credits to top it up.
